Exploring Tourism/Activities/Challenges for further growth

Future Challenges

Challenges - International

• Climate Change
  • As international concern regarding climate change increases it may affect visitor arrival to New Zealand with people starting to fly less, especially to long haul destinations. How can this be counteracted?

• Global Economy
  • The growth of the tourism sector is dependent on the economic growth in our visitors' country of origin. The greater the economic growth in a country, the more visitors arrive here from that country. So where are our visitors coming from?

• Aviation Capacity
  • The airline industry is highly competitive, and makes decisions about flight routes and frequency based on business profitability. These business decisions cannot be controlled but the desirability of New Zealand as a destination can be increased by making ti easy to enter and providing appropriate infrastructure.

• International Competition New Zealand is a niche market - because of how far it is from the international markets, and how much time and money it costs to get here. New Zealand needs to be marketed as a trend-setter, rather than a follower, and develop products to back this up.

• Fluctuations in exchange rate
  • Exchange rates have a relatively small effect on total international visitor arrivals. Fluctuating rates however do affect how much visitors spend while they are here. Increases in the value of the dollar also have a negative effect on domestic tourism.

Challenges - domestic

• Profitability of the Sector
  • Tourism as a sector is dominated by a large number of small and medium sized businesses. Profitability in this sector must increase or there will be no money for reinvestment to maintain or improve the quaility of the product.

• Availability of People
  • Tourism is service-based, highly labour-intensive and if there is to be an increse in visitor numbers then more prople will be required to serve them. The sector also pays less, on average, than other sectors and rarely offers full time employment.

• Local Infrastructure
  • The infrastructure needs of tourism and host communities need to be met and appropriately funded.

• Domestic Air Capacity and Transport Links
  • Affordable domestic air connections and other convenient transport links are essential for the growth of domestic tourism.